Starwood, BMO Lend $95M on David Werner’s Pfizer Life Sciences Campus Acquisition
By Cathy Cunningham August 16, 2023 3:51 pm
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David Werner Real Estate Investments has acquired a 1.9 million-square-foot life sciences and office campus in Collegeville, Pa., Commercial Observer has learned.
Pfizer was the seller of the sprawling property, which is fully leased to Dow Chemical and Wyeth, a biopharmaceutical company owned by Pfizer.
Starwood Mortgage Capital and BMO Capital Markets provided a $95 million fixed-rate commercial mortgage-backed securities loan for the acquisition, while Iron Hound Management’s Robert Verrone, Christopher Herron and Anthony D’Amelio negotiated the financing.
Sources familiar with the sale said the campus changed hands for around $180 million.
Dow currently conducts research and development in the 730,000-square-foot lab portion of the property. Wyeth also renewed its lease at the property in connection with the sale, sources said.
The campus — at 400 and 500 Arcola Road in the Philadelphia suburb on the border of Route 29 — comprises three five-story office buildings and two four-story research buildings, plus a two-story cafeteria.
Pfizer acquired the property through its purchase of Wyeth in 2009. Wyeth had previously owned the 340-acre site since 2000, developing the majority of its improvements within the first two years of ownership.
David Werner bought another Pfizer property in 2018, teaming up with Deutsche Bank Asset Management and Alexandria Real Estate Equities to buy the fee position on the pharma giant’s Midtown East headquarters at 219 East 42nd Street for $365 million, The Real Deal reported.
And, it’s not the first time BMO financed one of Werner’s acquisitions. Last year, the firm was the senior lender behind Werner, SJP Properties and Onyx Partners’ acquisition of Waterfront Corporate Center I in Hoboken, N.J. BMO provided a $153.8 million first mortgage in the deal, as first reported by CO.
Officials at David Werner Real Estate Investments couldn’t immediately be reached for comment. BMO, Starwood and Iron Hound officials declined to comment.
Cathy Cunningham can be reached at ccunningham@commercialobserver.com.
